An Economic Policy to Save Italy, and Europe
August 18, 2022How to craft an economic policy capable of saving Italy, and with it Europe? We have a few alternatives, summarized by the so-called "austerity trilemma" that affects the euro-area: You cannot have austerity (the loss of the possibility of using fiscal policy with increased public demand to counter adverse shocks and help the weakest), democracy, and a common euro currency simultaneously. We have to choose two of the three.
